Are Nonprofits Required to File a BOI FinCEN Report?

As a small business owner or nonprofit professional, it can be EXHAUSTING to try to keep up with all the changes in the laws. I’m here to help!

A new law went into effect January 1, 2024, that will require lots of entities to file a report with the FinCEN at the U.S. Treasury. Read on to learn if you have to file!

What is the new Beneficial Ownership Interest Report?

As part of the Corporate Transparency Act, some business entities are now required to file a report with the U.S. Treasury’s Financial Crimes Enforcement Network (aka FinCEN). This went into effect on 1/1/2024.

The Beneficial Ownership Interest (BOI) report will include personal details about the people who own or control the business. This reporting is designed to make it harder for bad actors out there to commit fraud through business entities, like shell companies.

Who needs to file a BOI report?

The short answer: most for-profit businesses registered in their state (corporations, LLCs, etc.) will need to file a report.

That is, unless they qualify for one of the 23 exemptions! Check out the full list of exemptions to see what kinds of businesses aren’t required to report. But here’s the big takeaway for you nonprofit professionals out there:

Tax-exempt nonprofits are exempt from reporting! Public charities, private foundations, and other nonprofits with IRS income tax exemption with a 501(c)(something) status don’t have to file a BOI report to FinCEN.

It makes sense that tax-exempt nonprofits don’t need to report. Nonprofit organizations don’t have owners at all!

How do you file the report (if you need to)?

If you run a business (read: not a nonprofit) and doesn’t meet the other exemption criteria, you need to file the report online.

It’s free to file, and if you existed before 2024, you need to get that report in by 1/1/2025. You’ll need to report any changes to the beneficial owner information (like a new name of the entity or a new CEO) to FinCEN within 30 days of the change.

More questions? Check out FinCEN’s Small Entity Compliance Guide here:

Related Posts

Just because nonprofits are exempt from this report, doesn’t mean you don’t have to file anything! Learn more about nonprofit compliance:

Nonprofit Myth Busters III: Nonprofits and the IRS

6 Ways to Lose Your 501(c)(3) IRS Tax-Exempt Status (Without Really Trying)

Charity Therapy Podcast: Anxiety Conga Line 

Birken Law Office – Law firm serving nonprofits organizations, and foundations – Birken Law

Birken Law Office – Law firm serving nonprofits organizations, and foundations – Birken Law

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